Latest news with #StockMoversPodcast
Hindustan Times
23-06-2025
- Business
- Hindustan Times
US equity futures fluctuate amid worries over Iran's oil flow disruption
US equity futures fluctuated as investors weighed the risk of Iran disrupting Middle East oil flows in response to American strikes on its nuclear infrastructure. Crude prices trimmed earlier gains. S&P 500 contracts were little changed after swinging between losses and gains. Brent crude pared an advance of as much as 5.7% to less than 1%, trading near $77.50 a barrel. The dollar strengthened 0.5% to its highest level this month, advancing against all Group-of-10 peers as traders hedged against the risk of further oil price gains. Subscribe to the Stock Movers Podcast on Apple, Spotify and other Podcast Platforms. Oil, which has risen more than 10% since the onset of the Israel-Iran conflict, remained the central focus as any interruption to traffic through the Strait of Hormuz raises the specter of a spike in energy prices and higher inflation. Israel ratcheted up attacks on Iran on Monday after Tehran vowed to retaliate against US attacks on its nuclear facilities over the weekend. 'Markets are judging that the response may not be quite as dramatic, because Iran would risk antagonizing others who are not yet pulled in,' John Bilton, head of multi-asset strategy at JPMorgan Asset Management, told Bloomberg TV. The market is 'absorbing a geopolitical event that is going on and judging that this does not, on face value, change the direction of travel.' The market's reaction had been generally muted since Israel's initial assault on Iran this month. Even after falling for the past two weeks, the S&P 500 is only about 3% below its all-time high from February. Additional losses may be contained, as some investors had already positioned for an escalation in the conflict. Equity exposure among fund managers has been trimmed while stocks are no longer in overbought territory. The market's sanguine reaction offers investors an opportunity to reduce their risk exposure further, noted Mohit Kumar, chief European strategist at Jefferies International. 'We don't see a closure of the Hormuz strait but see possibility of disruption,' Kumar said. 'Our base case would be a period of uncertainty lasting a few weeks, but without a sharp escalation.' Global bonds swung to gains after earlier losses. The rate on 10-year Treasuries fell three basis points to 4.35%. If Iran was to close the Strait of Hormuz, 'a stagflation scenario with lower growth and higher inflation due to elevated oil prices is the main risk for markets,' said Ulrich Urbahn, head of multi-asset strategy and research at Berenberg. 'It would also curb the abilities of central banks to support markets.' Corporate Highlights: Hims & Hers Health Inc. sinks more than 15% in premarket trading after Novo Nordisk A/S ends partnership. Novo fell as much as 5% in Copenhagen. Tesla Inc. rolled out its long-promised driverless taxi service to a handful of riders Sunday, a modest debut for what Elon Musk sees as a transformative new business line. A takeover battle for London healthcare REIT Assura Plc took a new turn after the board switched its recommendation from an all-cash private equity offer to a sweetened one by a listed player. British Airways and Singapore Airlines Ltd. canceled flights to the Persian Gulf, increasing aviation disruptions in the region after the US struck three nuclear sites in Iran and Tehran vowed to retaliate. Technology investor Prosus NV swung into profit for the first time, as it switches strategy under Chief Executive Officer Fabricio Bloisi. Buyout firm Advent reached an agreement to buy Spectris Plc, a UK maker of precision and testing equipment and software, for about £3.8 billion ($5.1 billion). Nomura Holdings Inc. more than doubled Kentaro Okuda's pay last year, rewarding the chief executive officer for guiding Japan's largest brokerage to a record annual profit. Stellantis NV is reorganizing its top management ranks as new Chief Executive Officer Antonio Filosa begins his push to turn around the struggling automaker. Some of the main moves in markets: Stocks S&P 500 futures were little changed as of 8:28 a.m. New York time Nasdaq 100 futures were little changed Futures on the Dow Jones Industrial Average fell 0.1% The Stoxx Europe 600 fell 0.4% The MSCI World Index fell 0.3% Currencies The Bloomberg Dollar Spot Index rose 0.5% The euro fell 0.5% to $1.1463 The British pound fell 0.5% to $1.3382 The Japanese yen fell 1% to 147.55 per dollar Cryptocurrencies Bitcoin rose 1.7% to $101,205.39 Ether rose 2.7% to $2,248.33 Bonds The yield on 10-year Treasuries declined three basis points to 4.35% Germany's 10-year yield was little changed at 2.51% Britain's 10-year yield declined two basis points to 4.51% Commodities West Texas Intermediate crude rose 0.6% to $74.27 a barrel Spot gold fell 0.2% to $3,362 an ounce
Yahoo
15-05-2025
- Business
- Yahoo
Stocks Bounce as Bond Yields Sink on Fed-Cut Bets: Markets Wrap
(Bloomberg) -- Wall Street traders sent bond yields lower as stocks bounced after tame inflation data combined with lackluster readings on retail sales and manufacturing bolstered the case for Federal Reserve rate cuts this year. As Coastline Erodes, One California City Considers 'Retreat Now' How a Highway Became San Francisco's Newest Park Power-Hungry Data Centers Are Warming Homes in the Nordics Maryland's Credit Rating Gets Downgraded as Governor Blames Trump NYC Commuters Brace for Chaos as NJ Transit Rail Strike Looms Treasuries rose across the curve, with the move led by shorter-term maturities. Money markets reflected slightly higher bets on at least two Fed reductions in 2025. The S&P 500 wiped out losses as Cisco Systems Inc. surged on a solid forecast, though big tech remained under pressure. Walmart Inc. fell after warning that increasing economic turbulence means the world's largest retailer expects to begin raising some prices. Subscribe to the Stock Movers Podcast on Apple, Spotify and other Podcast Platforms. Prices paid to US producers unexpectedly declined by the most in five years suggesting companies are absorbing some of the hit from higher tariffs. Growth in retail sales decelerated notably. Factory production declined for the first time in six months while New York state manufacturing contracted again. And confidence among homebuilders slumped. 'If you are in the stagflation camp, these data aren't confirming your thesis,' said Jamie Cox at Harris Financial Group. 'While growth is slowing, disinflation remains intact.' Government debt was whipsawed by a slew of block trades, including a large sale of Ultra Bond futures that sent the 30-year cash Treasury yield to nearly 5% for the first time since April before quickly retreating. Overall, the softer tone of the economic data biased most traders to purchase, with the shorter maturities most desired. Investors have been increasingly wary of buying long-term securities given concern about the US fiscal trajectory. The S&P 500 was little changed. The Nasdaq 100 slid 0.1%. The Dow Jones Industrial Average wavered. UnitedHealth Group Inc. sank 15% on a report it was under criminal investigation for possible Medicare fraud. Foot Locker Inc. soared 85% as Dick's Sporting Goods Inc. reached a $2.4 billion deal to acquire the retailer. The yield on 10-year Treasuries declined eight basis points to 4.46%. The Bloomberg Dollar Spot Index fell 0.2%. Oil slumped as Donald Trump said the US and Iran are getting closer to a deal regarding Tehran's nuclear program. Read: Powell Signals 2020 Fed Framework Language on Chopping Block 'Today's data doesn't change the narrative,' said Ellen Zentner at Morgan Stanley Wealth Management. 'Retail sales suggest consumers are becoming pickier, while there remains no sign of broad-based layoffs. The slowdown in inflation in April provides little comfort as the impact from tariffs is yet to come.' Despite the de-escalation with China, the trade story isn't over, Zentner said, it's still going to take time for tariffs to make themselves felt in economic data. Recession remains a possibility as tariff fallout continues to buffet global economies, according to JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon. 'Hopefully we'll avoid it, but I wouldn't take it off the table at this point,' Dimon said in a Bloomberg Television interview Thursday at JPMorgan's annual Global Markets Conference in Paris. 'If there is a recession, I don't know how big it would be or how long it would last.' In a separate Bloomberg Television interview, Apollo Global Management Inc. President Jim Zelter described the Trump administration's recent tariff pause and de-escalation with China as a 'macro political pivot' that came after a key meeting with US retail executives who warned policymakers of the challenges their proposals were causing on the ground. 'You would have been saying recession went from 30% to 70% or 80%, now it is probably below 50%,' he said. Read: A Trade Made for Buffett: Energy Stocks Priced Below Book Value Mike Mayo remains bullish on the biggest Wall Street banks, saying management teams were mostly upbeat at a recent conference and 'not blinking despite tariff risks.' The Wells Fargo analyst also expects the disconnect between optimistic management and investor concerns to keep narrowing, 'so long as there are no new major trade shocks.' Wells Fargo Investment Institute sees economic growth, clarity around Trump's tariffs and continued earnings growth driving further stock-market gains through the rest of this year and next. Strategists at the firm published new S&P 500 forecast for 2026, expecting US equity benchmark to climb to between 6,400 and 6,600 by year's end. WFII's new 2025 year-end target for gauge is range of 5,900 to 6,100, implying market could stay flat or eke out 3.5% advance. 'Our constructive equity outlook is not an all clear for the riskiest areas of the markets,' the team wrote, emphasizing preference from US large- and mid-cap companies. Equity gains will likely get harder from these elevated levels, so the relatively low cost of volatility hedges on offer right now hands investors an opportunity to build a defense against summer volatility. A retreat in index and single-stock volatility has been accompanied by a decline both in measures of correlation and dispersion. All four gauges are now at or below the levels seen on April 2, before Trump's 'Liberation Day' speech. That suggests markets have fully removed any macro uncertainty premium. 'While we continue to expect a range of trade agreements to be reached to sustain the tariff rate at roughly the level during the pause period, ongoing uncertainty could trigger further bouts of market volatility,' said Solita Marcelli at UBS Global Wealth Management. 'Phasing into the market can be an effective way for under-allocated investors to position for potential medium- and longer-term gains in US equities, while capital preservation strategies can help manage near-term risks of stock market declines.' Meantime, tax-bill discussions in Congress show the US 'appears unwilling' to rein in its fiscal deficit, while foreigners are less inclined to finance it, creating a 'major problem' for the dollar and the bond market, said George Saravelos, Deutsche Bank's global head of currency strategy. 'Running a wider fiscal deficit requires foreigners to buy an ever-expanding amount of US Treasuries and an ongoing rise of America's foreign liabilities,' he wrote. 'This we believe is no longer sustainable.' The dollar's descent is elevating the price of hedging currency trades around the world, breaking up a long-standing market conviction that costs tend to come down when the greenback weakens. The correlation between the dollar and a widely-watched gauge of volatility in Group-of-10 currencies fell to the lowest level in seven years this week. For most of the past 15 years that correlation was positive. Corporate Highlights: President Donald Trump said he's asked Apple Inc.'s Tim Cook to stop building plants in India to make devices for the US, pushing the iPhone maker to add domestic production as it pivots away from China. CoreWeave Inc. has secured a deal worth as much as $4 billion to provide additional cloud computing capacity to artificial intelligence leader OpenAI, expanding a tie-up between the two firms. Deere & Co.'s earnings beat the highest of analyst estimates, even as the world's largest farm machinery maker trimmed its profit outlook for the year. Phillips 66, which is under pressure from Elliott Investment Management to streamline its business, agreed to sell a stake in its German and Austrian fuel station unit for about $1.6 billion. Carvana Co. Chief Executive Officer Ernest Garcia III filed to sell shares worth $192 million as the used-car retailer's stock surged, by far his largest cash-out since the company's initial public offering. Coinbase Global Inc. said hackers bribed contractors or employees outside the US to steal sensitive customer data and demanded a $20 million ransom, in one of the most high-profile security breaches of a crypto trading platform. BlackRock Inc.'s executive pay proposal won preliminary approval from shareholders at its annual meeting, overcoming criticism from Institutional Shareholder Services Inc. that it has been slow to respond to questions about its pay practices. Alibaba Group Holding Ltd.'s quarterly revenue grew a disappointing 7%, reflecting a persistent Chinese consumer malaise that may dog the online commerce leader's big pivot toward AI. Shein Group Ltd. lowered US retail prices this week after the Trump administration temporarily cut duties on Chinese imports, as the online fashion retailer moves to win back consumers scared away by recent tariff-induced price hikes. Some of the main moves in markets: Stocks The S&P 500 was little changed as of 11:13 a.m. New York time The Nasdaq 100 fell 0.1% The Dow Jones Industrial Average was little changed The Stoxx Europe 600 rose 0.4% The MSCI World Index was little changed Bloomberg Magnificent 7 Total Return Index fell 1.1% The Russell 2000 Index fell 0.2% Currencies The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.2% to $1.1193 The British pound rose 0.2% to $1.3286 The Japanese yen rose 0.7% to 145.79 per dollar Cryptocurrencies Bitcoin fell 1.4% to $102,114.86 Ether fell 3.4% to $2,512.17 Bonds The yield on 10-year Treasuries declined eight basis points to 4.46% Germany's 10-year yield declined seven basis points to 2.63% Britain's 10-year yield declined five basis points to 4.67% Commodities West Texas Intermediate crude fell 3.1% to $61.21 a barrel Spot gold rose 1% to $3,209.20 an ounce Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race Why Obesity Drugs Are Getting Cheaper — and Also More Expensive As Nuclear Power Makes a Comeback, South Korea Emerges a Winner Trump Has Already Ruined Christmas ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
15-05-2025
- Business
- Yahoo
Stocks Bounce as Bond Yields Sink on Fed-Cut Bets: Markets Wrap
(Bloomberg) -- Wall Street traders sent bond yields lower as stocks bounced after tame inflation data combined with lackluster readings on retail sales and manufacturing bolstered the case for Federal Reserve rate cuts this year. As Coastline Erodes, One California City Considers 'Retreat Now' How a Highway Became San Francisco's Newest Park Power-Hungry Data Centers Are Warming Homes in the Nordics Maryland's Credit Rating Gets Downgraded as Governor Blames Trump NYC Commuters Brace for Chaos as NJ Transit Rail Strike Looms Treasuries rose across the curve, with the move led by shorter-term maturities. Money markets reflected slightly higher bets on at least two Fed reductions in 2025. The S&P 500 wiped out losses as Cisco Systems Inc. surged on a solid forecast, though big tech remained under pressure. Walmart Inc. fell after warning that increasing economic turbulence means the world's largest retailer expects to begin raising some prices. Subscribe to the Stock Movers Podcast on Apple, Spotify and other Podcast Platforms. Prices paid to US producers unexpectedly declined by the most in five years suggesting companies are absorbing some of the hit from higher tariffs. Growth in retail sales decelerated notably. Factory production declined for the first time in six months while New York state manufacturing contracted again. And confidence among homebuilders slumped. 'If you are in the stagflation camp, these data aren't confirming your thesis,' said Jamie Cox at Harris Financial Group. 'While growth is slowing, disinflation remains intact.' Government debt was whipsawed by a slew of block trades, including a large sale of Ultra Bond futures that sent the 30-year cash Treasury yield to nearly 5% for the first time since April before quickly retreating. Overall, the softer tone of the economic data biased most traders to purchase, with the shorter maturities most desired. Investors have been increasingly wary of buying long-term securities given concern about the US fiscal trajectory. The S&P 500 was little changed. The Nasdaq 100 slid 0.1%. The Dow Jones Industrial Average wavered. UnitedHealth Group Inc. sank 15% on a report it was under criminal investigation for possible Medicare fraud. Foot Locker Inc. soared 85% as Dick's Sporting Goods Inc. reached a $2.4 billion deal to acquire the retailer. The yield on 10-year Treasuries declined eight basis points to 4.46%. The Bloomberg Dollar Spot Index fell 0.2%. Oil slumped as Donald Trump said the US and Iran are getting closer to a deal regarding Tehran's nuclear program. Read: Powell Signals 2020 Fed Framework Language on Chopping Block 'Today's data doesn't change the narrative,' said Ellen Zentner at Morgan Stanley Wealth Management. 'Retail sales suggest consumers are becoming pickier, while there remains no sign of broad-based layoffs. The slowdown in inflation in April provides little comfort as the impact from tariffs is yet to come.' Despite the de-escalation with China, the trade story isn't over, Zentner said, it's still going to take time for tariffs to make themselves felt in economic data. Recession remains a possibility as tariff fallout continues to buffet global economies, according to JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon. 'Hopefully we'll avoid it, but I wouldn't take it off the table at this point,' Dimon said in a Bloomberg Television interview Thursday at JPMorgan's annual Global Markets Conference in Paris. 'If there is a recession, I don't know how big it would be or how long it would last.' In a separate Bloomberg Television interview, Apollo Global Management Inc. President Jim Zelter described the Trump administration's recent tariff pause and de-escalation with China as a 'macro political pivot' that came after a key meeting with US retail executives who warned policymakers of the challenges their proposals were causing on the ground. 'You would have been saying recession went from 30% to 70% or 80%, now it is probably below 50%,' he said. Read: A Trade Made for Buffett: Energy Stocks Priced Below Book Value Mike Mayo remains bullish on the biggest Wall Street banks, saying management teams were mostly upbeat at a recent conference and 'not blinking despite tariff risks.' The Wells Fargo analyst also expects the disconnect between optimistic management and investor concerns to keep narrowing, 'so long as there are no new major trade shocks.' Wells Fargo Investment Institute sees economic growth, clarity around Trump's tariffs and continued earnings growth driving further stock-market gains through the rest of this year and next. Strategists at the firm published new S&P 500 forecast for 2026, expecting US equity benchmark to climb to between 6,400 and 6,600 by year's end. WFII's new 2025 year-end target for gauge is range of 5,900 to 6,100, implying market could stay flat or eke out 3.5% advance. 'Our constructive equity outlook is not an all clear for the riskiest areas of the markets,' the team wrote, emphasizing preference from US large- and mid-cap companies. Equity gains will likely get harder from these elevated levels, so the relatively low cost of volatility hedges on offer right now hands investors an opportunity to build a defense against summer volatility. A retreat in index and single-stock volatility has been accompanied by a decline both in measures of correlation and dispersion. All four gauges are now at or below the levels seen on April 2, before Trump's 'Liberation Day' speech. That suggests markets have fully removed any macro uncertainty premium. 'While we continue to expect a range of trade agreements to be reached to sustain the tariff rate at roughly the level during the pause period, ongoing uncertainty could trigger further bouts of market volatility,' said Solita Marcelli at UBS Global Wealth Management. 'Phasing into the market can be an effective way for under-allocated investors to position for potential medium- and longer-term gains in US equities, while capital preservation strategies can help manage near-term risks of stock market declines.' Meantime, tax-bill discussions in Congress show the US 'appears unwilling' to rein in its fiscal deficit, while foreigners are less inclined to finance it, creating a 'major problem' for the dollar and the bond market, said George Saravelos, Deutsche Bank's global head of currency strategy. 'Running a wider fiscal deficit requires foreigners to buy an ever-expanding amount of US Treasuries and an ongoing rise of America's foreign liabilities,' he wrote. 'This we believe is no longer sustainable.' The dollar's descent is elevating the price of hedging currency trades around the world, breaking up a long-standing market conviction that costs tend to come down when the greenback weakens. The correlation between the dollar and a widely-watched gauge of volatility in Group-of-10 currencies fell to the lowest level in seven years this week. For most of the past 15 years that correlation was positive. Corporate Highlights: President Donald Trump said he's asked Apple Inc.'s Tim Cook to stop building plants in India to make devices for the US, pushing the iPhone maker to add domestic production as it pivots away from China. CoreWeave Inc. has secured a deal worth as much as $4 billion to provide additional cloud computing capacity to artificial intelligence leader OpenAI, expanding a tie-up between the two firms. Deere & Co.'s earnings beat the highest of analyst estimates, even as the world's largest farm machinery maker trimmed its profit outlook for the year. Phillips 66, which is under pressure from Elliott Investment Management to streamline its business, agreed to sell a stake in its German and Austrian fuel station unit for about $1.6 billion. Carvana Co. Chief Executive Officer Ernest Garcia III filed to sell shares worth $192 million as the used-car retailer's stock surged, by far his largest cash-out since the company's initial public offering. Coinbase Global Inc. said hackers bribed contractors or employees outside the US to steal sensitive customer data and demanded a $20 million ransom, in one of the most high-profile security breaches of a crypto trading platform. BlackRock Inc.'s executive pay proposal won preliminary approval from shareholders at its annual meeting, overcoming criticism from Institutional Shareholder Services Inc. that it has been slow to respond to questions about its pay practices. Alibaba Group Holding Ltd.'s quarterly revenue grew a disappointing 7%, reflecting a persistent Chinese consumer malaise that may dog the online commerce leader's big pivot toward AI. Shein Group Ltd. lowered US retail prices this week after the Trump administration temporarily cut duties on Chinese imports, as the online fashion retailer moves to win back consumers scared away by recent tariff-induced price hikes. Some of the main moves in markets: Stocks The S&P 500 was little changed as of 11:13 a.m. New York time The Nasdaq 100 fell 0.1% The Dow Jones Industrial Average was little changed The Stoxx Europe 600 rose 0.4% The MSCI World Index was little changed Bloomberg Magnificent 7 Total Return Index fell 1.1% The Russell 2000 Index fell 0.2% Currencies The Bloomberg Dollar Spot Index fell 0.2% The euro rose 0.2% to $1.1193 The British pound rose 0.2% to $1.3286 The Japanese yen rose 0.7% to 145.79 per dollar Cryptocurrencies Bitcoin fell 1.4% to $102,114.86 Ether fell 3.4% to $2,512.17 Bonds The yield on 10-year Treasuries declined eight basis points to 4.46% Germany's 10-year yield declined seven basis points to 2.63% Britain's 10-year yield declined five basis points to 4.67% Commodities West Texas Intermediate crude fell 3.1% to $61.21 a barrel Spot gold rose 1% to $3,209.20 an ounce Cartoon Network's Last Gasp DeepSeek's 'Tech Madman' Founder Is Threatening US Dominance in AI Race Why Obesity Drugs Are Getting Cheaper — and Also More Expensive As Nuclear Power Makes a Comeback, South Korea Emerges a Winner Trump Has Already Ruined Christmas ©2025 Bloomberg L.P. Sign in to access your portfolio
Yahoo
21-04-2025
- Automotive
- Yahoo
Tesla Slides as Analyst Warns of ‘Code Red' Ahead of Earnings
(Bloomberg) -- Tesla Inc. shares fell on renewed questions over Elon Musk's role with the federal government and uncertainty over the company's plans to introduce a lower-cost electric vehicle. DOGE Visits National Gallery of Art to Discuss Museum's Legal Status Trump Administration Takes Over New York Penn Station Revamp DOGE Places Entire Staff of Federal Homelessness Agency on Leave Nashville's $3 Billion Transit Plan Brings a Call for Zoning Reform Wedbush Securities analyst Dan Ives said Tesla's chief executive officer should step back from his controversial work at the Department of Government Efficiency and re-focus his attention on the carmaker. Tesla is facing a 'code red' moment as it prepares to report first-quarter earnings Tuesday, the analyst said. 'Musk needs to leave the government, take a major step back on DOGE, and get back to being CEO of Tesla full-time,' Ives wrote in a report to clients Sunday. 'Tesla is Musk and Musk is Tesla... and anyone that thinks the brand damage Musk has inflicted is not a real thing, spend some time speaking to car buyers in the US, Europe, and Asia. You will think differently after those discussions.' Tesla shares slid 6% at 9:56 a.m. Monday in New York, the biggest decliner in the S&P 500 Index. The stock has lost about 44% of its value this year as a consumer backlash against Musk has contributed to a global sales slump. The EV maker will delay by several months the production launch of a long-awaited lower-cost model, Reuters reported Friday, citing unidentified people with knowledge of the matter. Investors have been hopeful that a stripped-down version of its top-selling Model Y SUV could revive demand. Subscribe to the Stock Movers Podcast on Apple, Spotify and other Podcast Platforms. Two weeks ago, Ives slashed his price target for Tesla's stock by 43%, citing a brand crisis created by Musk and US President Donald Trump's trade policies. Ives' biggest concern has been the potential for Tesla to get caught up in the backlash against Trump's tariff policies in China, where the company generated more than a fifth of its revenue last year. Musk has also become the face of Trump's efforts to slash the size and scope of the federal government, infuriating progressive consumers who are a key client base for the leading American electric vehicle maker. 'Tesla has unfortunately become a political symbol globally of the Trump Administration/DOGE,' wrote Ives. He then ticked off several points: Tesla's stock has been crushed since inauguration, the company's first-quarter delivery numbers were terrible and protests against Tesla continue. Tesla faces 'potentially 15%-20% permanent demand destruction for future Tesla buyers due to the brand damage Musk has created with DOGE,' according to Ives. When the company reports earnings Tuesday, it will face questions about volume sales for 2025, progress on autonomous driving and plans for a robotaxi network, and how tariffs will impact profitability. Looming over everything is Musk's role in the White House. Musk, the world's richest person, is a special government employee, a classification for temporary federal hires who are only supposed to work 130 days out of the year in their roles. Musk is expected to step back from his role once his 130-day period has lapsed, people familiar with the matter said earlier this month. Ives said he remains bullish on Tesla, maintaining an outperform rating and calling it one of the 'most disruptive technology companies on the globe over the coming years.' Yet he said Tesla needs its 'most important asset' — Musk — back at the company full time. 'We view this as a fork in the road time: if Musk leaves the White House there will be permanent brand damage, but Tesla will have its most important asset and strategic thinker back as full time CEO,' wrote Ives. 'If Musk chooses to stay with the Trump White House, it could change the future of Tesla/brand damage will grow.' How Mar-a-Lago Memberships Explain Trump's Tariff Obsession The Guy Who Connected Donald Trump to the Manosphere It's Legal to Pay US Workers With Disabilities as Little as 25¢ an Hour The Rise and Fall of the Stock Market's Music King Eight Charts Show Men Are Falling Behind, From Classrooms to Careers ©2025 Bloomberg L.P.
Yahoo
26-03-2025
- Business
- Yahoo
GameStop Adopts Policy to Buy Bitcoin, Joining Other Firms
(Bloomberg) -- GameStop Corp., the struggling video-game retailer that became a favorite of retail traders during the meme stock frenzy in 2021, said its board has approved a plan to add Bitcoin as a treasury reserve asset. They Built a Secret Apartment in a Mall. Now the Mall Is Dying. Why Did the Government Declare War on My Adorable Tiny Truck? Trump Slashed International Aid. Geneva Is Feeling the Impact. How SUVs Are Making Traffic Worse Paris Votes to Make 500 More Streets Car-Free The Grapevine, Texas-based firm is joining a growing list of public companies experimenting with using corporate cash or borrowed money to buy the digital asset in a bid to capitalize on the surge in Bitcoin. The gambit was pioneered by Michael Saylor's Strategy, the enterprise software company formally known as MicroStrategy that has acquired more than $40 billion in Bitcoin and seen its share price soar. Last month, GameStop Chief Executive Officer Ryan Cohen teased at the idea, posting a picture of himself and Saylor on the X social media platform. Shares of GameStop rose as much as 14% on Wednesday. The stock is up around 80% in the past year. Subscribe to the Stock Movers Podcast on Apple, Spotify and other Podcast Platforms. A variety of companies ranging from medical tech providers to hotel developers have been inspired by the rise of Strategy. Its stock has increased over 2,600% since co-founder Saylor began investing the company's cash into Bitcoin as a hedge against inflation in 2020. The cryptocurrency is up close to 700% during the same period. Companies that have followed Strategy's footsteps have seen their stock prices soar after announcing plans to buy Bitcoin. Public companies that have a significant Bitcoin holding on their balance sheet have seen inflows from investors that want to gain exposure to the asset class in the stock market while not dealing with Bitcoin directly. A number of Bitcoin mining companies such as MARA Holdings Inc. and Riot Platforms Inc. as well as crypto exchange Coinbase Global Inc. have also been proxies of Bitcoin in that market. While GameStop has a struggling underlying business, it rose to fame when meme-stock traders piled into its shares amid the retail-trading frenzy during the pandemic, in which short-sellers of such stocks suffered a short-squeeze as retail traders sent the stock prices soaring. GameStop made the announcement late Tuesday while reporting that fourth quarter revenue declined 28% to $1.28 billion from the year-ago period. Sales of hardware and accessories and of software both declined in the quarter, while collectible sales rose. (Updates year-to-date increase.) Business Schools Are Back Google Is Searching for an Answer to ChatGPT The Richest Americans Kept the Economy Booming. What Happens When They Stop Spending? A New 'China Shock' Is Destroying Jobs Around the World How TD Became America's Most Convenient Bank for Money Launderers ©2025 Bloomberg L.P. Sign in to access your portfolio
